Their biggest challenge? Avoiding a recession

This post was originally published on this siteFrom The Conversation. Albo, or Plibersek, or whoever it turns out to be the next Labor leader, might have had a lucky accident. Usually, it’s Labor that inherits an economy turning down. This time, it’s the Coalition. And because of regular updates from the Reserve Bank and the … Read moreTheir biggest challenge? Avoiding a recession

NZ Reserve Bank censures ANZ

This post was originally published on this siteThe Reserve Bank has revoked ANZ Bank New Zealand Limited’s (ANZ) accreditation to model its own operational risk capital requirement due to a persistent failure in its controls and attestation process. ANZ is now required to use the standardised approach for calculating appropriate operational risk capital. From March … Read moreNZ Reserve Bank censures ANZ

YBR overhauls company, CEO to step down

This post was originally published on this siteYellow Brick Road Holdings Limited has announced that it is to create a “much simpler business” by disposing of its head office wealth business functions and focusing on mortgages, which will see CEO Frank Ganis step down from his role. Via The Adviser. In an update to the … Read moreYBR overhauls company, CEO to step down

Innovation policy is missing in action

This post was originally published on this siteFrom The Conversation. Three years ago, then prime minister Malcolm Turnbull went to an election spruiking the wonders of innovation. “There has never been a more exciting time to be an Australian,” government advertising had enthused in the months before. But the public wasn’t enthused, and Turnbull’s government … Read moreInnovation policy is missing in action

Discussing Negative Equity On The Radio

This post was originally published on this siteI discuss the Shadow Treasurer’s comments relating to sitting out negative equity with Ross Greenwood on 2GB Mr Bowen said they would “only lose money if you sell”. “I mean sometimes lots of people go into negative equity when the housing market does fall,” Mr Bowen told ABC’s … Read moreDiscussing Negative Equity On The Radio

The Credit Impulse Under The Microscope

This post was originally published on this siteWe review the latest ABS lending flow data to March 2019. The value of lending commitments to households fell 3.7% in seasonally adjusted terms. This follows a 2.2% rise in February 2019. Lending to households fell across all components in seasonally adjusted terms, with the largest falls in … Read moreThe Credit Impulse Under The Microscope

APRA accused of downplaying competition risks

This post was originally published on this siteA new report has found that APRA has “downplayed” and “dismissed” competition risks associated with its regulatory reforms, according to a new report, via InvestorDaily. A new report commissioned by the Customer Owned Banking Association (COBA) and compiled by Pegasus Economics – titled Reconciling Prudential Regulation with Competition … Read moreAPRA accused of downplaying competition risks

Not All Post Codes Are Created Equal In Mortgage Applications

This post was originally published on this siteDFA has developed a risk scoring system, which combines information from lenders, and households to provide an indicator of the relative likelihood of an applicant successfully obtaining a mortgage, within a specific post code, and the relative weighting in terms of loan-to-value (LVR) and other factors which will … Read moreNot All Post Codes Are Created Equal In Mortgage Applications

Fund managers slammed for paying ratings agencies and platforms

This post was originally published on this siteA damning new report recommending extensive reform in the financial sector has taken aim at fund managers that pay a sponsorship fee to have their product offered on wraps and platforms, via InvestorDaily. In its 60-page report entitled Professionalising Financial Advice, the CFA Institute and CFA Societies Australia … Read moreFund managers slammed for paying ratings agencies and platforms

15.2% Fall In New Homes Being Built

This post was originally published on this siteHIA released its quarterly economic and industry outlook report today. They plea for weaker lending standards to revitalise the residential construction sector. In other words let the debt bomb get ever bigger! The State and National Outlook Reports include updated forecasts for new home building and renovations activity … Read more15.2% Fall In New Homes Being Built

Wages rise 0.5% in the March quarter 2019

This post was originally published on this siteThe trend Wage Price Index (WPI) rose 0.6 per cent in the March quarter 2019 and 2.3 per cent through the year, according to figures released today by the Australian Bureau of Statistics (ABS). Trend growth in the public sector was 2.4% over the past year, compared with … Read moreWages rise 0.5% in the March quarter 2019

Someone has to lose in order for first homebuyers to win!

This post was originally published on this siteThe Grattan Institute published an interesting article in The Conversation. They argue that Labor’s policies are more likely to impact housing affordability than The Coalition. But right at the end of the article, they still preach lack of supply is the problem. This is not the case. First, … Read moreSomeone has to lose in order for first homebuyers to win!

Personal insolvencies fall in most capital cities in March quarter 2019

This post was originally published on this siteThe Australian Financial Security Authority (AFSA) released regional personal insolvency statistics for the March quarter 2019. The exception was Greater Darwin, and WA continues to experience high levels of insolvency. In the March quarter 2019, debtors who entered a new personal insolvency in Greater Sydney fell by 156 … Read morePersonal insolvencies fall in most capital cities in March quarter 2019

Finance sector one of the most at risk of data breaches

This post was originally published on this siteThe inaugural review of the Notifiable Data Breaches Scheme has revealed that the finance sector is one of the most at-risk sectors when it comes to data breaches, via InvestorDaily. The Notifiable Data Breaches Scheme was set up over a year ago when it became a legal requirement … Read moreFinance sector one of the most at risk of data breaches

Credit Impulse Dies Some More

This post was originally published on this siteThe value of new lending commitments to households fell 3.7 per cent in March 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) figures on new lending to households and businesses. The fall in lending to households in March follows a 2.2 per cent rise … Read moreCredit Impulse Dies Some More

CBA Ups Provisions And Reports Margin Squeeze

This post was originally published on this siteCBA released their quarter update to 31 March 2019. Its an unaudited summary. Its weak, and confirms the trends we saw elsewhere. Customer remediation is costing them dear. CBA shares dropped. They announced an unaudited statutory net profit of $1.75 billion and a cash net profit of $1.70 … Read moreCBA Ups Provisions And Reports Margin Squeeze

Tassie First Home Builders Grant Extended

This post was originally published on this siteThe Tasmanian Government announced yesterday that they have extended their first home builders grant. The Hodgman Liberal Government is a strong supporter of our building and construction industry, and we want to boost dwelling construction so more Tasmanians can be in a position to own their own home. … Read moreTassie First Home Builders Grant Extended

More Rate Cuts For New Mortgages

This post was originally published on this siteFrom The Adviser. ANZ and Macquarie Bank have reduced their home loan rates by up to 60bps, with changes across both lenders effective from 10 May. For its Breakfree discount package, ANZ has announced the following rate changes for owner-occupiers: three-year owner-occupied principal and interest rates have been … Read moreMore Rate Cuts For New Mortgages

Unnatural Acts As Advertised

This post was originally published on this siteWe discuss the Coalition plans for first time buyers. As expected. Sound of can being kicked down the road! Remember such incentives lift prices, and will “bribe” people into a falling market. One of the new announcements in today’s launch was the Coalition’s commitment to helping first home … Read moreUnnatural Acts As Advertised

‘Revolutionary Change’ Required To Address Unprecedented Global Extinction Crisis

This post was originally published on this siteFrom The Conversation. We are witnessing the loss of biodiversity at rates never before seen in human history. Nearly a million species face extinction if we do not fundamentally change our relationship with the natural world, according to the world’s largest assessment of biodiversity. Last week, in the … Read more‘Revolutionary Change’ Required To Address Unprecedented Global Extinction Crisis

RBA Cuts Growth And Inflation Forecasts; Rate Cuts Will Follow

This post was originally published on this siteThe RBA released their quarterly Statement On Monetary Policy today. Expect rate cuts, and QE later as the AUD is allowed to slide, as a decade of wrong policy is now coming home to roost. Plus they are tracking the labour market as a key determinate of policy … Read moreRBA Cuts Growth And Inflation Forecasts; Rate Cuts Will Follow

Household Financial Confidence Decays – Again!

This post was originally published on this siteWe have released the April 2019 edition of our confidence index, based on our rolling 52,000 household survey. The index fell again, to an all time low. All wealth segments declined (even those without a mortgage), but those leveraged up are really concerned now. Property Investors continue to … Read moreHousehold Financial Confidence Decays – Again!

Purplebricks Announces Australian Exit

This post was originally published on this siteHybrid real estate agency Purplebricks has announced its exit from Australia after two and a half years of trading, citing “challenging” market conditions and “execution errors” as the reasons for its decision. Via The Real Estate Conversation. In a statement released on the London Stock Exchange, the Group … Read morePurplebricks Announces Australian Exit

New Zealand Reserve Bank Cuts Cash Rate To 1.5%

This post was originally published on this siteThe Official Cash Rate (OCR) has been reduced to 1.5 percent. They signalled risks from China and Australia, and that lower mortgage rates might help household finances and housing. The Monetary Policy Committee decided a lower OCR is necessary to support the outlook for employment and inflation consistent … Read moreNew Zealand Reserve Bank Cuts Cash Rate To 1.5%

Retail Turnover Rises 0.3 Per Cent In March

This post was originally published on this siteAustralian retail turnover rose 0.3 per cent in March 2019, seasonally adjusted, according to the latest Australian Bureau of Statistics (ABS) Retail Trade figures. This follows a 0.9 per cent rise in February 2019. In seasonally adjusted terms, there were rises in Victoria (0.7 per cent), Queensland (0.6 … Read moreRetail Turnover Rises 0.3 Per Cent In March

Mortgage Stress Accelerates Ahead Of The Election

This post was originally published on this siteDigital Finance Analytics (DFA) has released the April 2019 mortgage stress and default analysis update.  Once again, it’s the continuing story of pressure on households as ongoing wages growth is not offsetting costs of living, and mortgage repayments and total debt continues to rise. Recent bank reporting highlights … Read moreMortgage Stress Accelerates Ahead Of The Election

Dangerous Derivatives And Why Our Banks Are Hiding Them

This post was originally published on this siteI discuss the risks to our banks from the poorly understood derivatives sector with Robbie Barwick from the CEC. It’s one BIG problem! Wilson Sy’s Paper: RBA Data: Link to Video: Please share this post to help to spread the word about the state of things…. Caveat Emptor! … Read moreDangerous Derivatives And Why Our Banks Are Hiding Them

Dwelling Approvals Fall 0.6% in March

This post was originally published on this siteThe number of dwellings approved in Australia fell by 0.6 per cent in March 2019, in trend terms, according to data released by the Australian Bureau of Statistics (ABS) today. This won’t help the GDP or construction employment. “The overall decrease was driven by private sector houses, which … Read moreDwelling Approvals Fall 0.6% in March